# Percentage Calculations - Again

#### Steve 1962

##### Active Member
Hi
I am having trouble with this spreadsheet. I am running Windows XP and Excel 2003.

Thanks

Steve
Book2.xls
ABCDEFGH
4VIEW 1Quarterly RateBase1st Quarter2nd Quarter3rd Quarter4th QuarterEquivalent Annual Escalation
54.663%11.0471.0951.1471.20020.00%
60.0470.0490.0510.0530.056
7
8Input quarterly rate into B5 and the result is shown in H5 as the equivalent annual rate
9
10
11
12VIEW 2Quarterly RateBase1st Quarter2nd Quarter3rd Quarter4th QuarterEquivalent Annual Escalation
134.225%11.0421.0861.1321.18020.00%
140.0420.0440.0460.0480.050
15
16Input annual rate into H13 and the result is shown in B13 as the equivalent quarterly rate
17Require cells C13 to G14 to have formulas which give the answer in B13
18Answer should show 4.663% in B13 if 20% is inputted in to H13
19Only cells available for inputs are B5 and H13
Sheet1 (2)

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#### Brian from Maui

##### MrExcel MVP
What is the logic behind the answer? How do you arrive at 4.663 when 20% is entered?

#### Richard Schollar

##### MrExcel MVP
Steve

If you have your annual equivalent, then surely your quarterly interest rate will be:

=(1+AR)^(days/year)

or in this case:

=(1+20%)^(1/4).

How are you determining it?

Richard

#### Steve 1962

##### Active Member
4.663% is the correct answer if it is used as a quarterly escalation. This will equate to 20% at the end of four quarters. Compounding interest is not as simple as multiplying 4.663 x 4. Obviously the answer would be 5% and not 4.663%.

In view 1, I am able to input the quarterly escalation and see what that translates to on an annual basis. What I want to do in view 2 is to input an annual rate and see what that equates to on a quarterly basis.

SH

#### Steve 1962

##### Active Member

I want the spreadsheet to give the same representation as in view 1. Eg: have each quarter change accordingly but achieve this by inputting the annual rate, not the quarterly rate. I want the quarterly rate to be calculated by way of formula.

SH

#### Steve 1962

##### Active Member
Hi Richard

Thank you very much - you are absolutely BRILLIANT!

It works perfectly and is exactly what I wanted.

All the best and thanks again.

Steve

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